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Consumption Booms and Housing Busts

Rising house prices are wonderful. People feel richer and more secure. Mortgage lenders, real estate agents and surveyors are busy. Home improvement services and vendors of furnishings are equally busy – more on that shortly. And builders start building more homes. It’s all good, isn’t it? The UK Government certainly seems to think so. It is busy engineering an economic recovery at least partly founded on outright subsidy of the mortgage market.

via Consumption booms and housing busts.

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